2002 (5) TMI 192 - AT - Customs

Summary

Issues:
1. Imposition of personal penalty on a Customs House Clearing Agent for mis-declaration of goods.
2. Interpretation of the responsibilities of a Customs House Agent under C.H.A. Licensing Regulations.

Analysis:
1. The appellant, a Customs House Clearing Agent, filed a shipping bill for export of readymade garments, but Customs Officers found old garments instead. The Commissioner imposed a penalty of Rs. 1.00 lakh on each case. The appellant denied involvement and argued acting on information from exporters. The appellant's consultant highlighted lack of evidence of involvement and referenced a tribunal decision. The Revenue argued the agent's responsibility to verify declarations. The Tribunal found no discussion on the agent's involvement in the mis-declaration in the impugned order. Lack of evidence of collusion with exporters led to setting aside the penalty based on the Tribunal's decision and the agent's limited role in verifying declarations.

2. The consultant argued that the agent acted as per information from exporters, and there was no evidence of knowledge of misdeclaration. The Revenue emphasized the agent's obligation to verify declarations under C.H.A. Licensing Regulations. The Tribunal noted the agent's role is to act on exporter's instructions and not verify market prices. It found no requirement for the agent to inspect goods before filing documents. The Tribunal concluded that the penalty on the agent was unjustified, setting it aside and allowing the appeals with consequential reliefs to the appellant. Stay petitions were also disposed of in favor of the appellant.